Fidelity Bank Plc is preparing to absorb oversubscriptions for its ongoing N127.1 billion combined rights and public offer, following high demand from investors.
The bank has called an extraordinary general meeting (EGM) to authorize the company to accept surplus funds from the offer, which is expected to be oversubscribed.
Shareholders will also vote to increase the bank’s issued share capital to accommodate the potential oversubscription.
The rights issue and public offer, which opened on June 20, 2024, have received enthusiastic support from existing shareholders and the general investing public.
Fidelity Bank is offering 3.2 billion ordinary shares at N9.25 per share and 10 billion ordinary shares at N9.75 per share.The acceptance and application lists are scheduled to close on July 29, 2024.
Shareholders have expressed their support for the offer, citing the bank’s impressive growth, dividend records, and capital gains.
The bank has delivered an average annual capital gain of over 100% in the past five years and has a strong corporate governance rating.
The recapitalization is seen as an opportunity for investors to buy into a good banking stock at a reduced price.
The EGM will hold on July 26, 2024, to authorize the company to accept surplus funds and increase its issued share capital.
The board of directors has reiterated its commitment to retaining the bank’s international banking license by meeting the new capital requirement within the regulatory timeframe.
The net proceeds of the offer will be applied to investments in information technology infrastructure, business and regional expansion, and product distribution channels.
The bank aims to take advantage of emerging business opportunities, secure long-term profitability, and enhance shareholder value.
Fidelity Bank’s combined rights and public offer has received positive feedback from investors, with many expressing their intention to pick up their pre-allotted shares and buy more stakes in the bank.
The offer has been recommended by key capital market stakeholders, including investment experts and stockbrokers.
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